California Water Service Group (CWT)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	51,911	96,011	101,125	96,831	63,116
Total assets	US$ in thousands	4,595,530	4,264,810	3,623,270	3,394,250	3,111,310
ROA		1.13%	2.25%	2.79%	2.85%	2.03%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $51,911K ÷ $4,595,530K
= 1.13%

California Water Service Group's return on assets (ROA) has exhibited a declining trend over the past five years, starting at 2.03% in 2019 and decreasing to 1.13% in 2023. This indicates that the company's ability to generate profit from its assets has weakened over this period. The ROA was highest in 2021 at 2.79%, followed by 2020 at 2.85% and 2022 at 2.49%. Despite these fluctuations, the ROA has generally been above 1% in the past five years, suggesting that the company has been able to utilize its assets efficiently to generate a return for its stakeholders. However, the recent decline in ROA may raise concerns regarding the company's profitability and asset management efficiency. Further analysis and understanding of the factors influencing this trend could provide valuable insights into the company's financial performance and prospects.